Jakarta (TheInsiderStories) – Publicly listed company, PT Adhi Karya Tbk (IDX: ADHI), ready to build light rail transit (LRT) lines Cibubur – Bogor starting 2021, said the chief executive today (08/21). While, the running test of LRT Jakarta – Bogor – Depok – Tangerang its expecting to be carried out next month.
LRT Jabodetabek phase I has been built since Sept. 1, 2015 with total costs Rp22.8 trillion.
CEO of the state-owned construction firm, Budi Harto said, for the new lines the investment cost more cheaper, because most of the rail build on the land. The lines have length more than 25 kilometers with an estimated investment of Rp10 trillion (US$704.23 million).
As for LRT Jabodetabek, other shareholder, PT Kereta Api Indonesia (KAI) has test the locomotives and carriages made by PT Industri Kereta Api (INKA). If the train ready to operate, then the trials will be conducted in September.
“The distance between the train was only 3 minutes. Utterly convinced collision does not occur. We expect the beginning of 2021 is already in full operation,” said Harto.
In addition to the LRT projects, currently, Adhi Karya is conducting a study to create an loop line (elevated railway) around the Jakarta region to reduce the congestion between the road and the train door. The elevated railway is planned to be built 20 kilometers with an estimated investment Rp15 trillion.
“We have obtained permission from the Governor of Jakarta and PT Jaya Construction (Jakon) to study the project,” said the CEO.
Another project that will be developed are transit oriented development (TOD). This year, Adhi Karya plans to build 18 TOD along the LRT lines. The project is planned to be carried out by its subsidiary PT Adhi Commuter Property (ACP). The unit has been injected with an initial capital Rp2 trillion.
These investments will be funded from various sources such as the establishment of equity funds, bond issuance at the end of this year, list it subsidiaries shares and a capital injection from the government. ACP planned to go IPO in the first quarter of 2020.
For the equity funds, Harto revealed, ADHI will form special purpose vehicle to get fresh funding for the projects. Initial target through the equity funds around Rp6 trillion.
Previously, in the first semester of 2019, the company had issued bonds of Rp1 trillion and will be resumed again to issue as much as Rp2 trillion by the end of this year.
Until July, Adhi Karya has pocketed new contracts amounting to Rp6.1 trillion, growing 13 percent compared to the last year which reached Rp5.4 trillion. The contracts are still dominated by the construction and energy business lines or 80.7 percent. While the rest from property business lines 19.1 percent and other business lines.
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